Rédaction Africa Links 24 with Grace Ashiru
Published on 2024-02-22 10:52:57
In response to the government’s recent directive to restrict access to cryptocurrency-related websites, including prominent platforms like Binance, OctaFX, and Coinbase, the Nigerian Communications Commission (NCC) has mandated telecom companies to block access to these digital asset providers. This measure comes several months after the Central Bank of Nigeria (CBN) issued regulations to oversee the operations of digital asset providers, altering its position towards crypto assets in December 2023.
The recent move to limit access to these crypto websites is aimed at curbing speculative activities on currencies within Nigeria. Users have expressed grievances, particularly in their inability to purchase dollars through Binance. However, Binance has clarified that its service is not intended for currency pricing amid the new restrictions. The company has also affirmed its commitment to providing a platform driven by market forces and free from fraud and manipulation.
In response to concerns regarding potential price drops, Binance has announced a temporary halt in transactions, emphasizing that foreign exchange rates are subject to a myriad of factors over which the platform has no control. The company remains committed to engaging with regulators, policymakers, and other key stakeholders to promote open and transparent dialogue in navigating the changing terrain of cryptocurrency and financial markets effectively.
The NCC’s directive to telecom companies to restrict access to cryptocurrency websites mirrors the action taken in 2021 when Nigeria imposed a ban on Twitter, directing telecom providers to block access to the site. This move is perceived as an effort to halt the ongoing distortion of the foreign exchange market amid ongoing economic challenges in the country.
Despite this directive, some individuals have expressed dissatisfaction with the government’s decision on social media platforms like X. Users have voiced concerns over the inaccessibility of the Binance website, expressing frustration with the government’s approach to addressing issues related to cryptocurrency and the foreign exchange market.
Nigeria has experienced significant growth in its cryptocurrency activities and is home to one of the world’s largest crypto communities, with a reported $56.7 billion worth of crypto transactions from July 2022 to June 2023. Chimezie Chuta, the founder and coordinator of the Blockchain Nigeria User Group, has criticized the government’s focus on targeting crypto transactions as a solution to the naira’s problems, citing the multitude of alternative exchange methods available and the potential for social media platforms to bridge the peer-to-peer exchange gap.
Despite the government’s efforts to restrict access to cryptocurrency-related websites, it is evident that Nigeria’s crypto community remains resilient and continues to navigate the evolving landscape of digital assets and financial markets. As the country grapples with economic challenges, the regulation and oversight of cryptocurrency activities will continue to be a topic of debate and scrutiny among industry stakeholders, policymakers, and regulators.
